Fixed Income S&T to Private Credit?
I work in Fixed Income S&T. Specially on the FIG Sales desk at a boutique investment bank in a T3 city. HQ is in Chicago.
Resume includes:
Previous role in commercial banking (top 5 bank) (3-years)
Current firm – analyst (3- years)
Current firm – associate (going into second year)
My entire career has been credit focused. Private side via commercial underwriting. Public side via current role in S&T.
How hard would it be for me to switch to private credit/direct lending? Ideally at the associate level. Current firm is underpaying, and I think its time to move on.
Based on the most helpful WSO content, transitioning from Fixed Income S&T to Private Credit/Direct Lending is possible, but there are a few key considerations:
Relevant Experience: Your credit-focused background, both on the private side (commercial underwriting) and public side (S&T), is a strong foundation. Private credit roles value diligence-heavy experience, and your exposure to credit products should align well with the skill set required.
Challenges: The main hurdle will be demonstrating your ability to think like a private credit investor. Private credit is more about direct negotiations, structuring deals, and understanding the nuances of credit agreements, which may differ from your current S&T role. Highlighting transferable skills like financial modeling, credit analysis, and deal diligence will be crucial.
Positioning for Associate Level: Since you’re already an associate in S&T, aiming for an associate role in private credit is reasonable. However, firms may scrutinize your ability to adapt to the private credit mindset, which is more relationship-driven and long-term focused compared to the transactional nature of S&T.
Networking and Targeting Firms: Networking will be key. Target firms that value diverse credit backgrounds or have a history of hiring from S&T. Boutique private credit shops or mid-market direct lenders might be more open to candidates with your profile compared to larger, more rigid platforms.
Compensation Expectations: Private credit roles generally offer competitive pay, often better than S&T at boutique firms, especially as you move up the ranks. However, be prepared for a potential learning curve and possibly a slight pay adjustment initially as you transition.
In summary, your credit-focused career positions you well for a move to private credit, but you’ll need to emphasize your ability to adapt to the private credit investing mindset and build relationships in the space.
Sources: Q&A - Commercial Banking Credit Risk SVP in Southeast USA, Q&A: VP in LO Public Credit, Direct Lending --> Distressed/Special Situations Investing, The Progression of a Fixed Income Trader, Q&A: Currently at a Credit Hedge Fund
Bump
The Direct Lending teams at insurance companies are filled with people from "non-traditional" backgrounds (Corporate Banking, Big4, etc.).
If that's a role you're okay with (even if just as a first step), focus your efforts toward those firms. With some targeted networking (reach out to other people with non-banking backgrounds) & solid interview prep, it should be very doable.
Thank you. Any firms you have in mind? I’m early in the process (researching firms, polishing the resume, etc).
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